The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-12-06

cclved by Congress that these and many other mat.
tors OF detail IN ouch they might be OF high I'm.
poTtAnce could not be wisely and effectively dealt
With by general legislation, but that such legisa'
ton must chiefly be restricted to provisions for
regulation and TO prevent abuse
COMPETITION.
A study Of the Art to regulate commerce has sat
ishCd the members OF the commission that II was
intended In ils passage 10 preserve for the people
tho benefits Of competition as between the several
transportation lines Of the country II that shall
be done the towns which have great natural adynn-
tages or advantages acquired by large expenditures
OF money In establishing new thoroughfnres OF
commerce, viii have cheaper rates Than can ordl-
narly be obtained by towns less fnvOubly situated.
New York. with It's noble harbor, It's central loca-
ton the Hudson river and the kre canal for Into
riOr waterways, cannot be deprived OF tho benefits
which spring from these great natural and acquired
advantages without altogether eliminating compe-
titior ~ n force In transportation charges. and by
exercise OF sovereign legislative power establish
ing arbitrary rates over tho whole country.
u might possibly be- within the competency Of
legislative power 10 prescribe for the several inter
state railroads equal mileage rates for the whole
country, but this, II enforced, would put an end TO
competition IA iactor Ia king rates, and, 10 a
very large extent, deprive the great business cen
tens Oi the country of their several natural advan-
tnges and also Of the benefit Of expenditures made
by them Ia creating for themselves nov channels
OF trade. ltwould, In ltct. work revolution IN
the business OF the country, which though II might
be greatly bcnelcial In solne directions, would DO
ieariully destructive In Others. Congress has not,
by The existing legislation. undertaken 10 inaugu-
nate such revolution; nothing In the act 10 regu-
late commerce looks IN that direction, unless IL be
the Prohibition 10 charge more for u shorter than
Tor longer haul on the same line In the slme direc
ton, the shorter being included In the longer dis
lance. Hut that prohibition h. not absolute and II 10
were strict Enforcement would necessarily bc ut
tho expense al the Competitive Centrn which have
heretofore had the exceptionally low rates. The
rate have made lhcm ccntcu Tor q valuable whole
sale trade which they cannot expect 10 retain
permanently In Its entirety II they are deprived
even In part Of the advantages which they have
hitherto had from the competition Of rival carriers.
Tho. benefit which non competitive points receive
musl lie largely at the expense oi the competitive.
This IL one OF The inevitable consequence Of per.
ieciing the roiom In the direction Of basing rates
upon distance more than has been the case hther-
70. II II an incidental disadvantage 10 some which
IN supposed 10 be more than made up by the more
equal apporlionment OF transportation benefits,
me competition by water Is the most important
hCtnr ~ forcing mtra o. low level az the points
where the lines Of land and water transportation
inter,ect Where thtc arr good channels of water
transportation, the cOst Of moving traffic upon II Is
very greatly below the cost Oi rail transportation
that the nIilrOals would scarcely be able 90 cou-
pete NJ all II mpldlty Of transit werr not In most
eases matter oi such importance that II enables
the railroads 10 demand aud obtain higher rates
Than are made by boat hut even when compen.
satc Tor the cStTn speed. the rates which the roads
can obtain IN competition With the natural water
ways must DO extremely low, aud In some cnses
leave uule, ~ any, margln for profit The expert
enco of the country has demonstrated that the nrtl
fetal waterways tnn not bo successful competitors
WIN lhe mllfuads on equal terms. II the effort IL
~ make the business upon them pay the cost OF
their maintenance and lair return upon the capt
tai Invested In thom, It's iutilty NUT soon Rp-
pear, The milnuads long since deprived the great
canals OF Ohio, Indiana and Illinois OF nearly all
their Importance, and the FIFE canal Il only main
tained ~ great channel Of tnde by the liberaliy
OF the suite OF New York In making IL use tree. IN
this way taking upon itself A hHo share OF the
cost OF transportation which would DO assessed
upon the property carried u the canal were owned
ndheld ior The proht Of operation, as the railroads
arr
In their competitive struggles with each other
towns cnnnut Ignore the effect which the existence
OF natuInl waterways must have upon mliroad
hrhs, the milroad companies cannot ignorc H. nor
eau the commission Ignore II n competition Il
still 10 exist and he allowed ~ ioro according to
natural laws Neither can the grcat irc Erie canal
DC Ignored; 10 Influences the rates To New York
moic than any other one cause, and indircctly,
through ~ influence upon the rates to New York
Il influences thOc 10 all other cabOard cities and
indeed 10 all that section OF the country,